Supply Chain Management for Moving House

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1. INTRODUCTION 
Supply chain management is the way to control the flow of the raw materials, 
semi final products, and finished products from the initial point of production, till 
the end of the chain where there are the customer. All this analyse is done in 
order to satisfied the customers. 
This definition is very generally and it includes: customer service, management 
of stock, material handling, how to decide to treat the costumer’s order, the 
disposition of the industries, of the stores, the supplying, the package, the 
management of the returned products, the transportations, how to store the 
products, and how to stock them. 
The supply chain could be defined in a more general way Operations 
Management. 
The logistical management could have all this parts or also only some of them, 
this depends on the integration of the management. 
We need this integration for two reasons: 
1) the logistical decision that we take in a area have always a lot of 
consequences in all the areas of the production (trade-offs); 
2) it will be very efficient if we decide to consider the logistical subject as the 
totally of production because logistics has a intrinsic meaning: total 
control of the production. 
 
The main goal of the integrated logistic is to reduce the cost of all the logistical 
activities for  create a new production or for a service. 
We can divided the logistical costs in 5 parts: 
 ξ  Cost for maintaining all the supplies  
 ξ  Storage cost 
 ξ  Cost for distribution and for carrying the products 
 ξ  Volume cost of materials 
 ξ  Cost for the information systems and for how to process the orders. 
 
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After this discussion we can define logistic as the connection between the 
market and the internal operations inside the farmer.  
This is the way the logistical supply works: 
 
 
Figure 1: Structure of supply chain management  
 
In the picture we can see something about the flows of information and we 
know that in the management chain supply we can use some information 
methods to avoid some loss of efficiency. 
Thanks to this new methods we can have a good information flows and 
nowadays there are three main methods: 
1. Some great enterprises impose their information system for all the 
supplies to get a simpler way to communicate. 
2. Other enterprise use IT technologies (Internet, Intranet, Extranet, e-mail, 
GPS etc.) that helps them to discuss each other in a very successful 
way, without being dependent of the system regulations they use. 
3. Other firms use ERP (enterprise resource planning) that have some 
basic model for the management of all the chain. 
 
All the methods we have already analysed are very important for: 
A. Optimise the procedure of management 
B. For the supply and the delivery  
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The firms need the Supply Chain Management not only for the previous 
reasons but also for the resolution of some problems like: 
™ problems of communications and sharing information 
™ for reducing some costs like: telephones call, fax, hours of job, time of 
supply and follow up. 
 
This method is very good for getting excellent communications processes, and 
information flows in the extended logistical chain, and the supply chain 
management is made by three levels: 
 Strategically level: we have to define the structure and how use the 
physical network to get some business target at the minimum cost. 
 Tactical level: the Supply Chain Management controls the activities of 
predictions of the demand, production, and distribution and transport and 
relative management methods 
 Operative level: this logistical method wants to management the 
operations and the transmission of the information in real  time that 
permits to get all the information about the state of the single enterprise 
and processes. 
 
 
Figure 2: Levels of Supply Chain Management 
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Another way to explain how the Supply Chain Management works is shown in 
the follow picture number 3: 
 
 
Figure 3: Action of the Supply chain management 
 
The integrated logistic is just an extension of the logistic logical. 
The traditional logistic management cares only about to optimise the flows of 
products inside the farmer, while the Supply –chain management teaches us 
that the internal integration is not enough. If we want to analyse in detail one 
Hypothetical example of Supply Chain we have to take a look to the following 
picture and consider that every part is strictly connected with every other parts: 
 
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Figure 4: Hypothetical Internal Supply Chain 
 
As we can see from the fig. 4 each unit in an internal supply chain shares 
information with the other units. Each has a relationship to varying degrees with 
every unit. 
On the left side of the diagram are those elements most closely related to 
supply issues in this example, and on the right side are those elements most 
closely involved with customer issues. 
Other units may be included or omitted according to an organization’s structure, 
and the nature of the business determines where each is positioned in fact 
Supply chains exist in both service and manufacturing industries. 
However, the complexity and organization of supply chains is vary immensely 
from industry to industry and from organization to organization.  
In practice, supply chains have multiple products with the potential of many 
shared components, facilities, and capacities. 
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While Supply Chain management and the Supply Chain seem to be very 
similar, the most notable difference is that the first one is a process that 
integrates and synchronizes the supply chain to meet an organization's goals 
and objectives.  
The six essential success factors of Supply Chain management are: 
 ξ  Consumer demand.  
 ξ  Information and communication technologies.  
 ξ  Globalization.  
 ξ  Competition.  
 ξ  Government regulations.  
 ξ  Environmental concerns.  
 
The dilemma that management in industry faces is how to satisfy two 
diametrically opposing forces: the customers' demands for better, faster, and 
less costly products and services and the organization's need for growth and 
profitability. To meet both requirements, business organizations use these 
logistical technique. 
Consumer expectations concerning service, speed, cost, and choice will 
continue to rise. The business trend is to provide consumers with what they 
want faster than any competitors can, at a price lower than the current market 
price, and in real time.  
SCM organizes the overall business process to enable the profitable 
transformation of raw materials or products into finished goods and their timely 
distribution to meet customer demands. External Factors are: globalisation, 
Government regulations, environment, and competition. 
In the following sentences, we have underline the main part of the SCM and, in 
the figure 5, we will see another way we can describe the SCM with its internal 
organization (about flowing material) we will start from the left side and following 
the arrows we will see the way that the production will following. 
The following of material is the topic we want to focus about and, the advanced 
supply chain management solutions provide materials managers with the 
necessary information to maximize contract and rebate attainment, conduct 
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enterprise-wide business modelling and work hand-in-hand with physicians to 
uncover further standardization opportunities. 
 
 
Figure 5: Supply Chain management and it’s internal organization 
1.1 Decisional Variables 
We have to define all the variables that affect the parameters of performance of 
the logistical chain; the measure of performance are made by a lot of variables 
and every variable can influence another one or more then one other variables. 
The main variables of the Supply Chain Management are: 
™ Installations assigned to products: if we have some products that doesn’t 
take place in the heart of the enterprise, we have to underline which 
installation will product a particular product and its quality. 
™ Level and number of stores: it’s necessary to know the number of the 
stores their capability, and also where they take place. 
™ Number of levels of chain: it doesn’t exist a perfect number of level of the 
logistical chain, this variable depends on: 
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1. the kind of product we want to sell;  
2. the strategy of distribution; 
3. the reciprocal influence of the member of each level; 
™ Centres of distribution: in the logistical and in the scientific literature,  we 
can find some cases in which it is possible to determine the optimal value 
of this variable, in fact the centres of distribution influence the level of 
service and the cycle time of the orders. 
™ Customers and relationship with supplies. 
™ Place of specialization or differentiation of the products. 
™ Number of every kind of products that are basically for the stores 
™ Scheduling of production and distribution. 
 
After this long description about the SCM structure and purpose we will go to 
analyse a practical case in the following page which means an enterprise that 
is interested to improved its logistical production thanks to the improvement of 
the SCM.  
All our work will of improvement is made with continuing brain-storming with the 
management of the firm that suggest us solution and receive new ideas about 
how to solve the management of the production and salve money and time. 
Before salving money although this is a very good target we will analyse all the 
cost to serve the costumers in the main different situation in which the firm may 
have to deal with, and this explain more than anything why the synergy of the 
forces is so important. 
This union of mental effort and information is the first step for any enterprise 
that want to improving the economical income and overcome the international 
competition. 
1.2 Analysis 
Enterprise: MARSHAL LOGISTIC and VS DOMY 
Goods: MARSHAL LOGISTIC is the first enterprise that we want to analyse 
these industry has three kind of products: 
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1) Cars 
2) Services for moving houses: every house has a bulk between 300 m
3 
and 400 m
3 
which is made by VS DOMY. 
3) Everything that the costumers need. 
 
VS DOMY: this firm is a civil engineering company based in the Czech 
Republic, which has successfully been designing and constructing timber frame 
kit houses since 1993.  
This object are very important and there are houses made in ecological houses 
that we be moved, as we will see, in many parts of Europe.  
During this time we have built hundreds of houses not only in the Czech 
Republic, but also particularly on the highly demanding German market. 
They have undergone a demanding quality certification to get the RAL Quality 
Certificate which you can see in the appendix. 
Now we are extending our activities to the countries of Western Europe, and in 
the following pictures in the next pages we will have a look of the main buildings 
the firm is able to build and move around Europe. 
VS Domy is located in Vsetìn which is a city in the east of Czech Republic in the 
Zlín Region, and the purpose of this firm is to get the costumer’s satisfaction 
thanks to the design of the houses that can reach the costumer’s demands. 
The costumer will be satisfied with solution that are studied for his specific 
needing and there will study the shape of the house, her bulk, the ground near 
the house, the Czech law about the houses and their maps and so on and so 
forth. After all this studying the house will be moved from Czech Republic to 
other country like: Germany, Denmark, France, Russia, Great Britain, Norway, 
Greece; and there are 9 kind of models of houses that can be modified every 
time as the costumer may ask. 
A model of house will appear in the following picture.